Issues such as workplace violence, theft and national security have spawned employers' use of background investigations in their candidate selection processes. Thousands of background investigation companies exist, offering to employers simple, routine checks such as employment verification to extensive investigations that include interviews with potential employees' neighbors. The questions asked during background checks can range from how long did the candidate reside at each residence to how many times each year does the candidate travel outside the country.

Employment Verification

Every interview during the selection process presents an opportunity for the recruiter or hiring manager to verify your work history. However, a background check is the prospective employer's way of collecting and documenting information that's necessary to extend a final job offer. Background checks concerning previous employment usually contain questions about employment dates, wages, positions and, in some cases, rehire eligibility. Many employers limit the information they provide to prospective employers; therefore, background checks generally consist of far more than simply employment verification.

Residential History

Background checks inquire about your residential history. Questions about whether you own or rent may not seem necessary for employment purposes; however, some employers have residency requirements. Also, if you've lived in the same house or apartment for many years, you could be viewed as someone who values stability, at least where housing is concerned. Many state, county and municipal government employers have residency requirements. Therefore, if you live in the approved jurisdiction, you won't be disqualified for employment based on where you live.

Financial

Many background checks contain questions about your finances, such as whether you have tax liens, judgments or bankruptcies on your record. Employers such as banks and financial institutions may be particularly concerned about hiring candidates who have delinquent accounts or candidates who are over-extended on credit cards and mortgages. The rationale is that employees who are cash-strapped or experiencing financial strain may be risky hires. However, the Fair Credit Reporting Act, or the FCRA, can protect the rights of job seekers who are subject to adverse employment actions based on their credit scores or financial disclosures. The type of inquiry that prospective employers make for background checks involving candidate finances are referred to as "consumer reports" and they can include more than just a credit check. Under the FCRA, you must give prospective employers written authorization to obtain this kind of information on you and you're entitled to a copy of the report transmitted to companies that check your credit.

Criminal History

Employment applications might ask questions about convictions for crimes above misdemeanors; however, there is an ongoing debate on whether screening job candidates based on criminal history is discriminatory. The U.S. Equal Employment Opportunity Commission provides technical guidance to employers who are concerned about the impact that criminal history inquiries can have on diversity applicants. Employers are permitted to deny employment if you have convictions but they can't refuse to hire you if you were arrested for a crime and weren't convicted of it. That being said, some state laws vary as well as the industry in which the candidate is being considered for employment. According to a 2010 survey conducted by the Society for Human Resource Management, just 10 percent of employers admitted they do not use criminal history background checks in their hiring processes.

Clearance Investigations

Jobs that require security clearance are mainly with federal government agencies such as the U.S. Department of Defense, the National Security Agency, Peace Corps and branches of the armed forces. In addition, employers awarded contracts from the Department of Defense often require cleared workers. Background investigations for various levels of clearance always include the typical inquiries about work and residential history. However, secret and top secret clearances may involve questions about social history, such as drug use and treatment for mental illness, to questions about your character during which investigators seek input from your neighbors and close associates. Also, some clearance investigations include questions about connections to foreign nationals, as well as the basis of any travel overseas.

About the Author

Ruth Mayhew has been writing since the mid-1980s, and she has been an HR subject matter expert since 1995. Her work appears in "The Multi-Generational Workforce in the Health Care Industry," and she has been cited in numerous publications, including journals and textbooks that focus on human resources management practices. She holds a Master of Arts in sociology from the University of Missouri-Kansas City. Ruth resides in the nation's capital, Washington, D.C.